* Income taxes will stay at current rates for households
making less than $450,000 per year ($400,000 for
individuals). This is a huge tax cut relative to
the Fiscal Cliff tax rates, which would have increased taxes for
everyone.

* Income taxes for income above $450,000 ($400,000 for
individuals) will revert to the Clinton era 39.6% from the
current 35%. These households constitute fewer than 1%
of American households.

* Capital gains and dividend taxes for households
earning over $450,000 will rise from 15% to
20%. This income will also be hit with the 3.8%
surcharge for Obamacare, so the full increase will be from 15% to
23.8%. For dividends, this is still a massive cut from the
Clinton-era rates of 40%.

* Some tax deductions for households earning more than
$250,000 will be phased out. So, on a net basis, taxes
may rise for about 2% of American households.

* The estate tax will stay basically the same: The
threshold for taxable estates will remain at $5 million, with a
40% tax rate over that level.

All of these tax
rates would be "permanent," meaning that Congress would have to
agree to change them. This is a big deal. Almost every fiscal
agreement reached by Congress since the Bush tax cuts of 2001 has
been scheduled to phase out at a future
date.

* Some tax cuts for middle- and lower-income households
would be extended for 5 years. These include a
child credit, the earned income tax credit, and a tuition credit.

* Unemployment benefits would be extended for one
year.

All these changes are expected to raise about $600 billion in new
revenue over 10 years versus current tax levels. That's obviously
far less revenue than would be raised if the Fiscal Cliff tax
rates were enacted.